A company that keeps no safety stock can expect an average service level of
A) 0%
B) 15%
C) 50%
D) 85%
E) Safety stock does not affect the service level.

Question

Quizplus · Accepted Answer

A company that keeps no safety stock can expect an average service level of 50% because without safety stock, the company can only meet demand half the time, assuming demand is normally distributed and there is no lead time.

A Company That Keeps No Safety Stock Can Expect an Average